Jim Starnes, finance manager, told his boss, "Ben, just like last month, I have determined appropriate revenue recognition for each of the 55 projects this month, based upon company policy and our standard procedures. Each of the projects has routine revenue accrual. I have prepared financial affidavits for each of these 55 projects, and I recommend that you approve the revenues by signing the affidavits." Ben's decision to approve the revenues is an example of a programmed decision because the underlying problem

A. is frequent, repetitive, and routine.
B. is risk-free.
C. has a predetermined outcome.
D. is trivial.
E. is novel and unstructured.


Answer: A

Business

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A) run-on B) comma splice C) fragment D) independent clause

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Rollans Corporation has provided the following information concerning a capital budgeting project:    After-tax discount rate 14%Tax rate 30%Expected life of the project 4 Investment required in equipment$200,000 Salvage value of equipment$0 Annual sales$430,000 Annual cash operating expenses$300,000 The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The income tax expense in year 2 is:

A. $180,000 B. $24,000 C. $105,000 D. $39,000

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Carattini Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:    Total budgeted manufacturing overhead$360,000 Budgeted hours 36,000labor-hoursStandard hours allowed for the actual production 34,200labor-hoursTotal actual manufacturing overhead$340,376 Actual hours 37,200labor-hoursThe total amount of manufacturing overhead applied is closest to:

A. $340,376 B. $372,000 C. $312,900 D. $342,000

Business